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City Edge Financial

Jumbo Loans

Jumbo loans offer borrowers more flexibility when borrowing more than the conforming loan limits. As a result, there are more options than most people realize, allowing you to have one loan rather than multiple to make your homebuying dreams come true.

What are Jumbo Loans?

Also known as non-conforming loans or jumbo loans, refer to mortgages that exceed the conforming loan limits set by government-sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac. These limits are based on the median home price in a specific area and are updated annually. In general, jumbo non-conforming loans are used to finance the purchase of higher-priced homes.

How do they Work?

Jumbo loans have similar guidelines to most other loans, except you must prove you can afford the higher payment beyond a reasonable doubt.

At City Edge Financial, we can help you apply for the jumbo loan that makes the most sense for your situation. Since every lender has different guidelines, we study them carefully to help you understand your options when choosing a loan.

How to Qualify for Jumbo Loans?

Because lenders take a large risk with jumbo loans, they often have stricter qualifying requirements. No two lenders have the same guidelines, but you might expect:

Requirements for higher credit scores

Lower maximum debt ratio requirements

The need for stable income and employment for the last two years

Proof of at least 6 – 12 months of principal and interest payments in a savings account

Who Needs Jumbo Loans?

Jumbo loans are mostly for borrowers buying a house that requires a loan amount higher than the conventional guidelines. If you’re purchasing a house in a high-cost area or just want to buy an expensive house, jumbo financing may be a solution.

Without jumbo loans, you’d need either a very large down payment to make up the difference or a second mortgage loan. While a second mortgage can be an option, it may have a higher interest rate and fees than a jumbo loan. Plus, you’d have to deal with two mortgages instead of one.

How to get an Jumbo Loans

If you’re thinking about buying a home that requires jumbo loan financing, contact City Edge Financial today. Our professionals will get to know your situation and help you understand the loan options available from our partner lenders. So let’s get started today!